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Dec 11, 2025

The little-known regulatory bodies that can make or break AI data centers

Scott Brennen, director of NYU's Center on Technology Policy, says public utility commissions have the power to set rates for energy use and have a say in whether infrastructure permits and upgrades can move forward.

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The little-known regulatory bodies that can make or break AI data centers
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The AI boom is propelling a once-obscure group of state regulators into key decision-making roles for the economy. AI needs data centers, data centers need power and power is generally regulated in some way — depending on the state — by public utilities commissions.

That's the topic of a new report from the Center on Technology Policy at NYU. Scott Brennen, CTP director and author of the report, said these commissions often make decisions on planning and permitting for new infrastructure and decide the rates utilities charge consumers.

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The Hidden Regulators: Public Utility Commissions and AI Governance” from NYU’s Center on Technology Policy

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